Oireachtas Joint and Select Committees

Wednesday, 18 October 2023

Committee on Budgetary Oversight

Post-Budget Engagement: Economic and Social Research Institute

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent) | Oireachtas source

I thank our witnesses for being here and for their time. We really appreciate it. The aspect of the budget I would like their opinion on is the increase in the minimum wage. It is of course something we are all concerned about because the ever-increasing cost of living makes it harder for people to balance their household budget and an increase in people's take-home wages is something we all want to see. However, when the Government says it is increasing the minimum wage, it is doing nothing. All it is doing is getting people who are creating employment, especially small employers, to pay more money that in many instances they do not have. The aspect of this I am raising relates to the small, struggling businesses that are very grateful and thankful for their employees, without whom they could not conduct business. However, in many instances those businesses are barely keeping their doors open and now it looks as if each employee will be costing maybe €50 or €60 per week more, which is quite simply money these employers do not have.

Another thing that has happened at this time, which I am certain the Cathaoirleach will be acutely aware of in his constituency, is that people have decided now of all times is the moment to do a review of the rates. On Monday night when I was doing my round of clinics in County Kerry, many people came to me about this. Some of the places I was holding clinics have fallen foul of it. Their rates have been multiplied not once or twice, but three times. Consequently, people who had a rate of €4,000 per year, which they were struggling to pay, are now being asked to pay €12,000. Businesses, therefore, have the rates, the increase in the wages and the increase in the fuel costs we all know about. It is fine to say the last set of costs are coming down, but that is like good weather in that it is coming every week but not exactly coming at the same time.

These people are really struggling to keep their doors open and I am fearful about the number of businesses that are closing. I have seen it in my county and I always say if I can see something happening in my constituency, then it is happening in the Cathaoirleach's constituency, in Deputy Doherty's constituency and happening everywhere. I think of the small shop, the small pub, the small grocer, the little post office in the corner and the hardware shop that is now trying to compete with all the multinationals that are coming in here with fanfare and glory and to hell with the local indigenous businesses. These people are really struggling. I respect very much the CVs of the witnesses before us and I wanted to hear their position and get their take on what it is going to mean in the Ireland of the future. Are we going to be an Ireland where the villages, and indeed the smaller towns, have no small businesses?

I will give one last example. In a town in County Kerry that is very dear to my heart, a certain family have for 70 or 80 years had what we will call the local jewellery shop. If you broke your watch or needed a new strap, if people were getting engaged or if it was Christmastime, you could go to this terribly reliable family and buy those jewellery goods. Very sadly, the announcement came this week that after 70 or 80 years of trading, always being there and providing an excellent service, that beautiful little shop is going to close and that town will have no jewellery shop going forward. In all honesty and all sincerity the town will probably never again have a shop like that. Are we just going to be a poorer place because we will not have services and facilities like that? It is awful and horrendous. I would like the ESRI's view on that aspect of the budget and of life in Ireland today. I thank the Cathaoirleach and hope I did not go on too long.

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